Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Decode the market's secrets! | Tuesday, May 30, 2023 | 01:00PM EDT Enroll Now
S&P 500: Elliott Waves Remain Bullish
www.investing.com/analysis/sp-500-elliott-waves-remain-bullish-200616631
S&P 500: Elliott Waves Remain Bullish
By Robert Lefter | Feb 01, 2022 04:57AM ET The bears took a hard punch last week. However, bulls are not in control yet. Investors will probably have to manage a retest of the January lows.
Excessive bearish sentiment and oversold conditions triggered a sharp rally over the past week. Bears have been squeezed as the buy-the-dip crowd smelled an opportunity. Subsequently, buyers retracted almost half of the recent correction.
Nonetheless, another attack at 4245 is likely. The recent selloff recovered from total momentum on virtually any technical time scale. Moreover, the sentiment was bearish but not in panic mode last week. Most often, similar conditions resulted in another leg just slightly lower.
Therefore, a capitulation selloff is the base case. Bulls want to see that on diverging momentum and breadth. The black and red scenarios blueprint how that could play out. Black reaches a slightly lower low after a fourth wave consolidation.
On the other hand, red fails to get to a lower low. Instead, a reversal unfolds somewhere between the 4300-4400 S/R cluster, which coincides with the 200 DMA. Red is slightly more likely, and a bullish five-wave sequence signals within an Elliott Waves framework that the late January low holds.
Last but not least, both scenarios blueprinted today get invalidated if momentum persists in the next selloff and 4220 breaks sustainably. The bottom line is that the S&P 500 remains likely to target 5000-5200, despite a bumpy road ahead.
Related Articles
Top Stocks That Usually Defy Gravity During Economic Slowdowns
By Ismael De La Cruz/Investing.com - May 29, 2023
6
The US economy's chances of entering a recession are on the rise While the economy may or may not enter a recession, investors would be wise to add recession-resistant stocks to...
S&P 500 Earnings Yield Remains Solid Despite Retail Miss
By Brian Gilmartin - May 29, 2023
1
It will be interesting to see how much of the recent move in Treasury yields is a default premium being built into the asset class versus worries over economic growth that...
5 Factors That Will Affect the Stock Market in 2023
By Amer Aldouri - May 29, 2023
1
The stock market had a mixed year in 2022, with significant volatility driven by concerns around inflation, interest rates, and geopolitical tensions. As we move into 2023,...
S&P 500: Elliott Waves Remain Bullish
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.